RE:Supply and demandRex...OPEC/Saudia have used their final play so to speak.
If world inventories dont decrease materially in Q3 and Q4...what moves does OPEC have left?
Saudi's produced over 11m barrels per day in Sept 2022 and then starting in Nov 2022 they started cutting until July 2023..Saudi is at 9m barrels.
Is this a healthy oil market demand wise with Saudi at 9m a day....2m less than last year?
Can demand be that good world wide if they need to do this?
USA is producing 3.6m barrels a day more than Saudi right now...that is a joke.
The reality is USA is going to set an alltime produciton record this year at 12.63m versus 12.3m in 2019. How is USA doing this with DUC's and Frac Count at levels they are at? Well technology is better than in 2019.
It is hard to see the effects of technogy in USA patch as it is not so much the intial well productivity is so much better...it isnt in most plays.
But wells are producing more in year 2 to year 5 in the shale plays.
Instead of some wells going from 800 barrels a day in year 1 to 200 barrels in year 2 in the Permain Basin they are doing 300 or 400 barrels in year 2 as in example.
It is a very bad idea for USA to ever grow over 13m barrels and USA will in 2024 unless oil prices decrease to stop the USA train.